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VMware targets MSP capabilities with $500m acquisition

VMware is acquiring CloudHealth Technologies for around $500m to help managed service providers and enterprises better control multi-cloud operations. CloudHealth already has around 3,000 global customers and manages clouds across AWS, Microsoft Azure and Google Cloud environments.

The platform enables customers to centrally analyse and manage cloud costs, usage, security and performance for public clouds.

“Multi-cloud usage while beneficial to business creates a unique set of operational problems,” said Raghu Raghuram, chief operating officer for products and cloud services at VMware. “With the addition of CloudHealth Technologies we are delivering a consistent and actionable view into cost and resource management, security and performance for applications.”

VMware Cloud Services will now have the ability to add delivery of consistent operations across clouds to its portfolio, said the vendor. Once the deal is closed, VMware cloud automation services, VMware Secure State and Wavefront by VMware will add automation and compliance, security and governance, insights and analytics to CloudHealth's capabilities.

Firms that already rely on CloudHealth include customers and managed services providers like Yelp, Dow Jones, Zendesk, Skyscanner and SHI.

In its positive second quarter results last week, VMware said sales from the international business were up 15% and now represent 51% of the total. The company pointed to large software-defined data centre and hyperconverged infrastructure-led deployments with European telcos and service providers like T-Systems for the performance.

It added that partnerships with cloud service providers in the UK, France and Germany are helping it to reach new customers, so the CloudHealth capture may help things further.